- Summary:
- Cineworld Share Price Chart: Our LON: CINE analysis reveals that the stock might not be a longterm hold even if the company comes out of the bankruptcy.
Cineworld (LON: CINE) share price has been in a downward spiral for the last 12 months. During this time, the only bounces have been the volatility spikes due to takeover rumors and speculation over the bankruptcy proceedings. The largest cinema chain operator in Europe has been in a slump since filing for bankruptcy in September 2022.
Shares of the Regal owner remained highly volatile on Tuesday. Till press time, the shares were trading at 1.08p after dropping from their daily high of 1.20p. The high volatility has made Cineworld more prone to market manipulation due to its low market cap.
CEO Of Cineworld Cinemas Appears In CinemaCon
According to the most recent Cineworld news, the company’s CEO has recently appeared publicly at CinemaCon 2023. Mooky Greidinger saluted the Regal employees and also praised Lionsgate and The Hunger Games.
“I want to salute the team at every cinema in the world, not just the United States. And especially our team, the Regal manager team. I give you a big shout-out.”
Mooky Greidinger – CEO Cineworld
In other news, the bankrupt Cinema operator has canceled its plans to sell its cinemas in Central Eastern Europe and Israel. The company received multiple offers for its operations outside the UK and the US, which had very little priority on its sell list. Finally, a debt restructuring plan was shared by the company after failing to find a potential buyer for its top assets. This would allow the company to come out of bankruptcy later this year.
Cineworld Share Price Maintains A Bearish Outlook
At this stage, it is needless to say that the LON: CINE currently holds a bearish outlook, as the following chart is quite self-explanatory. The shares are currently accumulating below the range lows after breaking down below the major support of 1.86p. As long as the price stays below this level, my Cineworld share price forecast will remain bearish.
According to many analysts, coming out of bankruptcy won’t end the troubles for the British theatre chain unless it finds a way to become profitable once again. While the shares may have a strong bounce as the company comes out of bankruptcy, they may still not be a good long-term hold.
In the meantime, I’ll keep sharing updated outlook on LON: CINE in my free Telegram group that you’re welcome to join.
